Class discussion question

1. Drivers to adopt the sell-side of e-commerce in developing countries are improving efficiency and reducing costs of transactions.

2. The barriers are:
· Problems with infrastructure: such as hardware and software, telecommunications, product delivery and transportation.
· Problems finding skilled staff.
· Transactional trust: this is influenced by the culture of a society and their willingness to adopt a new system, especially when the consumers cannot see the seller face to face.
· Government policies and support: how willing the government is to support a new system and to invest time and money into its development.

3. These barriers can be overcome by:
· Provide access to technology by manufacturing and developing the infrastructure, with more cost-efficient products.
· Provide training to and assistance to staff.
· Developing a sense of trust online through friendly websites and informal conversation with customers.
· Encouraging governments to reform their economic system to encourage business contracts and banking. The government working to support the online industry can also help encourage transactional trust among consumers.

4. Yes, E-commerce is good for the economy of developing countries. It will encourage more business creativity and capitalistic ventures.



Efendioglu, A. et al. E-COMMERCE IN DEVELOPING COUNTRIES: ISSUES AND
INFLUENCES, retrieved September 29, 2009 from:
http://userwww.sfsu.edu/~ibec/papers/25.pdf